The issue of retirement planning must be taken seriously if people are to live comfortably and live a more fulfilling life than they were in working life, said Othneil Blagrove, senior manager of sales at JN Life Insurance Company. said.
Blagrove said Jamaicans should see pension plans as an emergency and not an issue for the elderly, as retirement is mandatory regardless of career. He said that if people’s pension savings are low and their retirement plans stretched to the limit, many will continue to become a burden to their children, other families or the nation, affecting Jamaica’s long-term economic goals. added that it would give
“Ensuring that we receive our pensions is something we all have to take very seriously. Retirement is one of those things that you can almost certainly expect to achieve one way or another,” he asserts. “As a result, there is always a need to discuss this topic, especially since just under 20% of Jamaicans contribute to an approved pension fund.
“Many Jamaicans now associate pensions with the elderly, who are often not in a position to provide for themselves and who must rely on the goodwill of their children or others. It doesn’t have to be, a pension can actually mean that an individual can live and work comfortably and enjoy the same or better quality of life.
The senior manager explained that pension plans are employee benefits that are drawn from pooled and invested money to fund retirement payments. Part of the thing, he said, is to inform yourself about the different ways people plan for retirement and the two main types of approved pension plans.
“There is an approved superannuation fund for the employer’s pension plan and an approved retirement plan that is a pension plan for the self-employed and individuals who are not part of the employer’s pension plan,” he said. Told.
He added that it’s important for people to understand the difference between the two plans.
“An approved superannuation fund is a pension plan implemented by most employers. Under this arrangement, employers with this type of plan require full-time employees We will force them to contribute,” he said.
“The arrangement allows employers to contribute a certain percentage and employees to contribute a mandatory amount of their salary. The contribution amount is 20% of someone’s annual compensation/salary,” he pointed out.
He added that those who are self-employed or who are not part of an approved retirement pension fund can also benefit from the pension plan when they retire.
“They can participate in approved retirement plans, such as the JN Individual Retirement Plan. A one-time contribution is required and can be up to 20% of your income.We also use this opportunity to encourage self-employed people to start their own businesses as soon as possible because the amount they can put towards their pensions. Because the more money you have, the bigger your retirement money will be,” he said.
Blagrove explained that retirement isn’t just for the elderly, young people also need to be considered.
“When you’re in your 20s, you might think you’re young and out in the world,” Blagrove said. “This may be true, but time flies when you’re having fun, and you might find yourself approaching retirement and not saving for your pension. So starting early can be beneficial. Also, pension savings are compounded, so if you plan to retire at age 21 and make the maximum contribution from that age onwards, you’ll have saved quite a bit by the time you retire. If you haven’t contributed, you’ve taken steps to accumulate a small amount of savings by the time you retire, and you’re young enough to increase your contributions as your career progresses.”
